DICTATORSHIP

Evening Post, Volume CXXIV, Issue 110, 5 November 1937, Page 11

DICTATORSHIP

LABOUR STATE'S TREND

"NUMBERLESS INSPECTORS"

USE OF EXTRA TAXES

"The Government now appoints all the directors of the Reserve Bank. We would not alter that, but what we object to is that the directors are there only at the pleasure of the Minister, which means that they become the tools of the Minister," said Mr. K. J. Holyoake, National member of Parliament for Motueka, in the course of an address at Khandallah last night. There was an attendance of about 100 at the meeting, which was presided over by Mr. T. K. Henderson. The keener interest in politics than for some years was easy to understand, said Mr. Holyoake. Political parties of the past had not the fundamental differences of those of today. The Labour Party was endeavouring to set up a Socialist State, and it held theories which had been tried and found wanting, theories which if put into practice would rob the individual of initiative and liberty of action. THREE POINTS OF VARIANCE. "We have had it dished up to us in glib statement in the last few years by the Labour leaders that the Capitalist system has broken down, and that it has outlived its usefulness," continued Mr. Holyoake. "The talk glibly of a State with no private enterprise, no private motives, where everyone will work for the good of the State, and of the benefit to the coming generations, but we must face up to the facts. Of course I believe that whatever the school of politics, we are driving along to the ultimate benefit of humanity, but I want to discuss the fundamentals of the two parties. Let us take the Capitalist system which has lived so long, and emphasise its three points: (1) private ownership; (2) private interests controlling industry; (3) equal opportunity for all for reward according to the initiative, ability, and energy put into the job. Then take' Socialist Labour's points: (1) State ownership of everything; (2) State control of everything; (3) equal incomes for all irrespective of what is put into the job. "Has Capitalism failed? It is not the perfect system. We will never have the perfect system. I hope not, because I hope we will go on improving the system for all time. No system can be good -with poverty. We have not done away with poverty, but we have progressed a great deal in the last 100 years; indeed, the poverty- which exists today is nothing like that of 50 years ago. Would we have less poverty under a Socialist system? The man on relief, even in the days of depression, had many amenities and privileges the rich did not have 50 years ago, in civic services and in other benefits." He referred to the large number .of people still unmeployed, though exports had brought in £29,000,000 more than during the slump. ■ RISE IN TAXATION. "When it came to taxing the rich people and relieving the poor, the Government found that there were not many rich people, and the big increase in taxation has hit chiefly those between £300 and £600 a year, through raised income tax," .said Mr. Holy;, oake.^ "We get half our income iaxa-' tion from company taxation.^ Taxing the rich man? Yes, but' also taxing the poor. Unless under present conditions the company can put up the values of its goods it cannot carry on long. Who carries that extra ex.pense? The purchaser of the goods. You cannot tax one class effectively without. affecting the whole of the; people.. It's like trying to wet one man in a crowd, with.a hose, and soaking the lot." ■''.'■ Quoting the increase that had taken place in taxation, which had reached £22 a head, £5 higher than Great Britain, he stressed the fact that in Great Britain the taxation included the huge armament programme. If New Zealand were pairing its full share of that, taxation per head would be £30. Where did all the collected taxation go? asked Mr. Holyoake. There were now many more. Government, departments and some of the men in them were getting higher salaries. Many of the services were not entirely necessary. ■ Part of'the extra taxation had gone in the direction of setting up what 1 was really a police department, paying numberless inspectors. He had , been told by a man in a factory that no fewer than 27 inspectors had visited it in one week to look at one machine. A storekeeper in his electorate had had three inspectors in a day. It was all very well to create jobs for men and women, but the employment of so many inspectors would retard employment in industry. Formerly, it had appeared that the Labour Party's view was that no man was worth more than £500 a year, but there were now two broadcasting departments instead of one, with two men in receipt of £1500 a year (one of them "rising to £2000"). He did hot think these men were too highly paid, but where was the £500 a year ideal? It was estimated that the return from advertisements on commercial stations this year would be £140,000, and if the first arrangement entered into with, one of the highlypaid men.were continued, he would get 7J per cent, of that, but perhaps he would be satisfied with "a miserable £1500"? A third gentleman in the broadcasting sphere was to receive £1500 as sales manager. DICTATORIAL WAYS. It seemed that in its efforts to establish a Socialist State in New Zealand the Government had found it necessary to adopt dictatorial methods. Rule by State Departments was in effect a dictatorship. "A new principle, has crept into legislation in regard to transport; where the Minister is a dictator from whose decision there is no appeal," said Mr. Holyoake. "This is contrary to all British ideas and laws. We have always been proud that our courts are free of political control. Not long ago, the Minister commented unfavourably on decisions of the courts in transport cases. ; ; : Some people seem to think that there is a possible dictatorship from the National Party, a sort of! Fascist future. Nothing is more impossible. . < "Those who know the National Party, and how every member of it is encouraged to maintain his democratic principles, know. the impossibility of this. Personally, I would fight to retain the democratic principle against any political party." • ' On the motion of Mr. S. Wright, a vote of thanks was carried to the speaker by acclamation, following which National Party members were, enrolled; !

Williamson and Co. advise that 22 attractive building sections at Sunnydale will be sold by public auction tomorrow in the Church of England schoolroom, Johnsonville. The property is within easy reach of Johnsonville station and two bus services pas'! the site.